If you hold it longer it may be taxed as a long term capital gain.If it is a tax deed, I suspect the taxation is very different.I am not an accountant please seek professional legal and accounting advice. 

Do I even need an LLC to have a business account from a taxation stand-point?

While a local HI accountant is not a requirement, you'd need someone who understands HI taxation.

@Julie FlynnWashington has a unique tax obligation called the B&O Tax(Business and Occupation Tax) for certain businesses.Washington in general does not have a state income tax filing obligation so you don't need to find a CPA who specializes in your states tax laws.You created a post on biggerpockets regarding LLC's and loans - You should make sure that the professional you choose understands LLC taxation and the rules surrounding that.If you will acquire a property in OKC, you will be required to file a federal return + Oklahoma non-resident state tax returnBest of luck

There are also benefits of the LLC that you might want to take advantage of like flexibility when it comes to ownership, management, and taxation.

ya I always wonder what the big attraction for those that live in income tax ( state) see in Texas where there is no income tax at the state level.. and pay those kind of property tax's then pay state income tax on top of it.. 

Has anyone ever done a structure like that or any other ideas how to not be exposed to capital gain taxation on the sale of his portfolio?

Hello BP Community & any Tax Professional reading this👋🏽, I'm looking to get my first deal & would like professional advice on general questions I have ranging from what expenses can be deducted to how taxation works with Partnerships.

Here's a very helpful article by @Scott Smith on LLCs and pass through taxation.

(such as things that can reduce taxation both in US and Canada)As a beginner, should I independently finance or take a loan and buy more units?